Tesla Plunges 15% After Earnings; EU Opens FSD Probe, Shanghai Deliveries Surge
TSLA is trading near its 52-week low of $297.38 (9.4% above the low).
Summary
Tesla shares cratered 15% following its Q2 earnings release, triggering heavy post-earnings volatility. The drop comes despite a 37.8% year-over-year jump in Shanghai-made EV shipments to 93,579 units in July, marking the ninth straight monthly increase. European regulators, led by Sweden and France, are now scrutinizing Full Self-Driving over speeding and driver-attention risks, pressuring Tesla to modify FSD behavior and deployment. On the demand side, Tesla joined a limited California EV incentive offering $3,500 for new Model 3/Y orders placed from August 3, 2026. The sharp sell-off suggests the market is pricing in margin compression from heavy AI and R&D spending, as flagged in the recent 10-Q, while the EU probe adds a new regulatory overhang. The Shanghai shipment strength provides a counterpoint, but the immediate focus is on the earnings-driven revaluation and FSD risks in Europe.
At the time of this announcement, TSLA was trading at $325.38 on NASDAQ in the Manufacturing sector, with a market capitalization of approximately $1.3T. The 52-week trading range was $297.38 to $498.83. This news item was assessed with negative market sentiment and an importance score of 9 out of 10. Source: Wiseek News.